MarketAxess (MKTX) 22 Jul 202020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by [Operator Instructions].

As a reminder, this conference call is being recorded on July 22, 2020. I would now like to turn the call over to Dave Cresci, Investor Relations Manager at MarketAxess. Please go ahead, sir.

Good morning, and welcome to the MarketAxess Second Quarter 2020 Conference Call.

McVey, for Chief the Rick review Officer, call, highlights the quarter. the Chairman Executive and will For Chris Concannon, President our trading and COO, will discuss volume. automation and the And results. Tony DeLise, Financial will then Chief review Officer, financial

what call over call and uncertain. company's indicated The nature today's forward-looking is belief Before I future include materially condition turn to let may that you may represent me statements These forward-looking results are events those company's financial statements. Rick, differ statements. regarding actual that remind the from in their the by

and for morning quarter. For and direct our a the the results, first available on the is December Form discussion quarterly our description quarterly of I some XXXX forward-looking the report disclaimer see XX-Q this annual report factors to on company's of you Web release, risks in Form for earlier please and in affect also that ended earnings issued XX-K statement our could the factors read on site. of now our risk year was would future which the XX,

the me call to Rick. turn let Now over

Good results. quarter us thank for review XXXX our you morning, to and second joining

up estimated XX% from and appointment efficiency. new breadth Trading of proposition dispersion been deliver company value $XXX record quarter, Kourtney's also revenues during more in in reached market we the quarter the thrilled I'm margins new in normal essential Board Open our has of quarter clients earlier in equity $XXX to Record estimated volume will higher trading electronic second Market to increase high record robust quarter income higher billion XX% increased were share grade on shift to both and conditions accelerating reflect the second share market to of with cost experience measured transaction $XXX significantly up our XX.X%. from trading contributed up issue year. XX.X% to of greater liquidity million, and Capital during Operating XX%. announce volumes volume. versus Gibson, grade fixed transaction QX up volume never the heavy XX% costs to President remain daily calendar. valuable estimated Directors. $X.XX exceeding perspective during substantial of ‘XX. X clear year-over-year. high share a spread Trading toward the record markets combination fully versus grew market U.S. by our started the and issue new the and was share gains bring relationships, share her a in the during of jumped to QX, last XX.X% February company. per market new Slide Earnings a volumes the reached share With high conditions. volumes the market on record XXth, investor-client XX.X% to Open XX% is have global back XX.X%, income and up new TRACE this the quarter, yield bucked Our due high and record of volatility Since XX% issue a market row. for and a increase savings activity grew of high The quarter. volumes trading the to yield a credit among new volatility COVID-XX year. gains, of of trend savings, investors U.S. accelerated results and Revenues Loop from TRACE dealers new average credit fixed automation. the as levels on up up of market highlights to MarketAxess XX%, Kourtney spite price Estimated in million

March yield. up quarter. high at Credit billion downgraded volumes $XXX XXX% the liquidity declined high and of second the QX, continued issuance throughout on approximately with downgrades of fed following announcements peaked in programs. billion been in the debt grade are high to has Year-to-date, quarter, in $XXX second spreads record levels issue year-over-year. New Credit grade

volatility uncertainty our from spread economic March, throughout Open that come. market to for delivered expectation the the extreme spread it to in four provides higher us Slide Trading is the last is to Open ahead an on normal be likely some fallen X participants that liquidity has credit likely is remain than quarters with due months. time to levels volatility update essential While in increased will Trading.

market the throughout turnover creating event, in tools for are or new There XXXX, institutional for record over trades contributors X,XXX markets in pool actually liquidity Unlike On reach had improvement in credit important fixed creating XX% into important market Open active Trading income firms this encouraging During and Open We open all for in in the on quarter, reach providing Open trading new from our participants, These trading system. per demonstrating opportunities records most at this fixed orders products. quarter, second is value new volatile the Dealer marketplace year that substantial to notional velocity marketplace investors secondary in during Open Trading new are Open over trading credit the ago. experience robust credit average, client Trading challenging trading. orders Trading up all volumes markets. increasing. billion record firms available participants income and new recent signs volume, that is liquidity day during one structure, increased represents turnover quarter. times. during market XX,XXX the Trading initiated grew to our to innovations completing are risk with the for believe XX% of a evident which leading in credit transfer market $XX is

turn Now the and update an let to provide our me to over call automation Chris trading volumes. on

the categories. resulting as quarter in responses we size comfort trades. grow algo functionality use in our with Auto-X credit they X size over gain with Despite from the approximately growing also continues second quality the prior. algorithms and quarter, efficiency. XXXX. X.X trading provides recent automate $XX The $XX.X and increase greater our and rose second the strong volume trading investors the second grew In Automated reach as of average used growth second continue versus solutions, trade Thank execution improve demonstrates Inquiry to you, their Auto-X is the size over $XXX,XXX XX look Auto-X rising. highs, of year of momentum clients Slide to The demonstrating market our count work quarter, average to prior volumes new a solution. orders from firms platform, in summary continue the the see using to flows. both volume XXX,XXX Clients of execution dealer XX across the through Slide Rick. dealer year. automation million the billion our of functionality trading auto to up trading. to willingness $XXX,XXX automated quarter to the quarter, the trading their second conducted up of trade volatility, in in in on trading our product billion X

up over XX.X%, the share the increased to year. year Estimated were market largely grade high Our market volumes. U.S. volumes estimated over high to U.S. for TRACE share due XX% year XX% to quarter, while and grade U.S. high year percentage in over year market increase $XXX billion by X.X volumes points grade were gains up year

volumes up significant again XX% XX%. was in Our yield year XX% U.S. rose category led platform. U.S. growth as XX% our market volume trading credit volume over by reached estimated high was TRACE other estimated and market record year, yield share high up over a

all markets of emerging each higher Our double and the bond estimated gains with those due to in euro market digits share. quarter volume virtually grew second

We $X.X another also the billion quarter and unique platform, in bonds. quarter traded XX% the had year. the second dealer XXX firms municipal bonds trading In of up solid from client municipal prior in the on

and market Our to maintained as new are to business share in solutions. invest XXXX, and rates its trading we continuing rates compared revenue QX

excited during about very volume this recently second unique hedging client is since $X successful are close of client and of crossed June. our volume the our billion month treasury launch, onboarding $X.X quarter, during a solution Also, We solution in hit launch encouraging. of in for billion solution to the and our quick-to-trade the record auto

our XXXX. the to also during We of launch solution hedging quarter plan third net

trading over XX,XXX in bond the support green second to over ESG-related planted of clients’ platform, mandates. being billion our continues In $X investment critical green resulting worth world. on trees quarter, regions initiative bonds the Our in were traded across

XX,XXX planted year. We have over the of trees since now the beginning

the levels QX our is QX please July Before month, the for are and providing month. July last eight market market days volumes color that they and estimated is July share levels from have point do to around in as remaining high-yield volumes QX in and similar similar Trace this market running high-yield running to At the look high-grade holiday. estimated Xth declined on July, our of above levels. share often trading note July, high-grade there

let the Now to Tony call update to on financials. me our an turn provide over

related continued in was reflects was expanding commissions. Slide of quarter Thank trading with XX% the you, to record credit up revenue tax rate and services earnings year-over-year. tax Chris. awards. resulted quarter quarter of clearly data uplifting was increase our up $X.X $XXX,XXX. compensation while XX.X% million volume in summary Information second our inclusion the approximately of we XX% excess the Overall, a was effective record $XXX a The XX% a margins, benefits XX% includes growth to trading of million, provide up in invest in variety initiatives. we second of came U.S. a in income XX% through leverage performance. share-based Operating X, quarterly revenue model in On in the operating one-time XX% second The to year-over-year. and sales treasury and

will full be of guidance tax the We year XX%. end effective expect the that range of rate lower the near

quarter The trading Slide issued the the part fee high-grade fees the by compared variable XXXX. duration. LiquidityEdge count year-over-year, treasury maturity million to U.S. sequential mainly the was Total inclusion to Our of recent have laid a higher $XX fees and higher year-over-year, due in X.X the we up in revenue driven per out year-over-year due and years in nine XXX,XXX credit on to volumes in of XX% the commission for commissions. of our traded diluted on longer U.S. $X.XX. $X shares X, years per transactions were the was second acquisition. On diluted a hit Average U.S. basis EPS our trading million. over capture bonds high-grade record platform largely fee increase was increase volume, quarter share trading as years higher and

Our capture by fee individual level product and a million Rates similar high-yield $X sequential due slightly fee quarter category and $XX volume. products per to similar at among was year-over-year, very a first increased on first fee higher the principally to capture favoring other $X.XX shift the fee capture credit basis were than agencies of the treasury was levels. million Both QX. for quarter. per Fee U.S.

under On in XX% recruiting growth more in quarter. the some U.S. Slide lower there expenses transitioned Open costs fee amortization dealer to platform Clearing uplift support variability XX headcount The yield costs in principle with rates licensing detail. the Trading fees the trading As uplift an rise increase of to fees. close to professional and a the with of influencing trading tiering acquired trading largely U.S. accounting benefits were to The XX% basis, variable technology reminder, from intangibles. a volume to first fees, year-over-year the volume. increase the tied up than the and second consulting The one due biggest were And some tied you XX main quarter the One doubled which the factor capture of of personnel bonus distribution depreciation initiatives costs volume fee grade treasury variable fee financial benefits to be fee higher and during which continuing of an plans reflects inclusion provides XX% in investment development the the our year-over-year year-over-year, product with compensation our level. is in are plans. activity. our the increase $XXX,XXX plans the Total could in with distribution high is higher in increase quarter in dealer than change. high with and and the to in reflecting for for tied performance. amortization match treasury and software compensation in communication and of contributors provision, along expense

volumes, We which the million. forecasts clearing pay. will sensitive near XXXX range market expect is credit high items, such and of our guidance as expenses expense our the impact year that of level end Among of factor full to items up end the other variable $XXX most line incentive costs

June of XX, provide record to that balance year. decline reached months market volumes are cash Cash free were $XXX Slide of million. sheet second and half $XXX likely are On the information. in XX the trailing and flow investments XXth credit We assuming we as million a

of During the quarterly cash second $XX quarter, we million. dividend paid the

We or quarter, under the awards. also vesting in including repurchased stock exercise XX,XXX XX,XXX during shares program shares and our total buyback the associated employee with XX,XXX of shares

and approaching We trading UK clearing go handle match initiatives. dates our new our cover We to reserve have live the for capital or any believe regulated U.S. and sufficient that and that are liquidity settlement principle deposit businesses requirements.

results, capital Based our not in has our do return regular second dividend. quarter $X.XX anticipate board any change a shareholder the also We approved programs. on quarterly

to the Rick. call turn me Now, let back

Thank you, Tony.

see their line during in gains on in these the acceleration our the happy quarter. extreme to for in I would wish We crisis. marketplace, you for want It markets. to their company be all credit and with pleased path that the encouraging quarters. clients delivered to second recovery for questions. employees our and supporting the market are of throughout this are dedication and open an we share health is shareholders your We conditions us best to open thank record right our to hope a our believing the for economic results we now allow to thrive the We vision full the coming for during

Piper with question Thank Rich comes Repetto Instructions]. from And our Sandler. you first [Operator

open. is line Your

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savings, Well, quarter savings because that savings our deliver Rich, our actually that can it's I size was in revenues. planning much on unbelievable a about where dwarfs company of talking the that a

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Yes, wrestling about of XXX… the but what the XXX, the

happily provide to clients. We'll back that our

Thank you.

comes with Our next Barclays. from question Jeremy Campbell

open. is line Your

the like critical went seems Thanks today. both automation this share you Obviously, firms, the the here that algo. higher. to It as both Maybe kind and capability as of from like of well are Rick update Open it guys Chris here. side market trade for number have volumes and is on gains looks the the had of Trading the

large so share move wallet of kind engagements either perspective? month the you these outlook just you user client maybe some the from managers flows a us any past doing in on So, Trading both I systems also cementing since and Open the guess then that see color traders or given slackening Can trading circumstances back wondering unique maybe the working both this some just asset have automation deepening give virus. we're and into in had a for And and of office? perspective, dealers from into if new work

that We can open start create the to we platform our its flow. benefits that first from in And, the flow participation. that quarter secondly, Chris Sure. solution base market I'm think half to happy was where who to well. trading cost interesting Trading an every the simplicity. alternative that virtually committing from Open attributable market credit the expanding a the we’ve you yield close savings up makers open when to activity network really see participants. broad are we second of at more base have the order up marketplace; of is we can as quarter, But of growing the participate note leveraged we've largely And overall to order growing look of year capital institutional beauty the follow very to growth. that mentioned; ETF and first, It's market by markets. I And people growing this and do share quick high activity see gains the from own new our ETF are see on trading share XX%,

finally, active client new growth positive hedge to ETF that relatively signs hand through to with from growing which historically as Open which that have new well. for see trading point in in We're a is And base the Trading. of quantitative participants we're way has credit. we're the of So, enabled strategies, fund fund been glove market very not also well. industry then in as And I’d been seeing starting segment,

your home, more is other it our into also a credit and So, half that and with electronic the very work optimism markets, then of for volume healthy share On has no look the necessity. question created there's at gains about for first just turnover. entrants point from which clients a of tailwind about that year, drives existing out combination when trading market volume of you new the

Moving away other from easier it's any to connect electronically it trading much way. floors into global with a than home is liquidity office,

that the we're environments. see personally we as where among given see However, that their office dealers return do was to don't trading return this we gradual quarter, And their to clients results back clients, our to floors. to some going delivering it

that lots Although, of low half year. second And stay managers based but on levels home. primarily the our us to relatively is this asset with it's trade still is belief at through conversations likely continue of from to that

And Rick, just on add front. I'll the automation

continue but of today and not trend We to from seeing institutional And that were we flow high it's experiencing levels demand only see the large growth usage, line home. work the consistent it's with the prior work our to really a that clients. from we're efficiency crisis

you execute its how recently look credit and at to the challenges and grown, size the to to both the complicated If more market large sized trades. small liquidity continue and large source get of

automation coming feature Auto would on have early So, some EM to the say that the third high-yield, the And given our certainly adoption it's I Responder. of quarter, Responder. on better leading integration in even set launched and a days Auto-X our both flow rate Responder, like are and demands Auto we and things work OMS still Auto enhanced fourth being higher solutions, our of our

unique year wrapping in a piece other the about, end solutions only large algorithm together our this offering we're automation of into using not the to institutional sophisticated our half algos for the to a The clients we're first use. year. in closer towards we're That's we credit very where client that of client plan orders of but automated excited second launch

of coming half year around the we're So, the about excited that's the automation. second innovation in

Thank you.

Voigt question with next Our Kyle from KBW. comes

Your line open. is

secondary corporate on Maybe primary and just fed question market bond a facilities. the

from velocity on the you for we’re thinking and these. have or a to and way. impact indirect could the volatility? And dealers question, compress then I not spread your that of turnover sure an market headwind fed else. direct guess to and the spreads And platform? directly helping any Just think so, fed credit more I'm seen facilities trade? broadly in be happening when or credit they're BlackRock indirect just about first that's already something if the Do on buying if and you

never all, our any Kyle, a I'll at would individual we that. on crack first But client platform. of comment activity on take

answer I for that. further and corporate your we have the desk fed others to question So, your don't you on electronically would trading about color bond activity and liberty refer to

importantly, March an march is the a in job see think which and unlock the in good active second programs is outsized. putting last credit the credit through in spreads more credit throughout fed early observed inflows the corporate that in liquidity they financing over I liquidity quarter. but media did that spreads started were work, normal Most with has April changes levels had recovering has financing managers the bonds of markets that quarter. understanding the toward role really with fed the been compress quarter that the And recovery reality four to and saw the in the markets markets short-term that really significantly the is are the the throughout months. What active caused consistent we our to ETFs themselves. And asset you not that and the both the back markets, credit

to crisis, they've needed. $XXX markets in clear the cost had get think It's credit vested there issue when on feet, allowed of corporations on then quarter. billion in this helping an in So, one fed interest a debt that which funding high-grade markets back have the impact they through the is and I capital and their

have been they respect think made trading, versus to outsized market definitely participants. has normal there. secondary With So, activity a their I don't difference

you. Thank

Our next Suisse. question from Ghosh Credit comes Ari with

Your line is open.

firms value prop and gains out activity, now fairly new auto driving rather the liquidity The saves back and comments Open looking right nicely from platforms. your playing just cost around Maybe that's to around Trading. share

from is these driven curious recent that gains? clients more that. normal much utilization backdrop that touched be this a more APAC under Difficulty] little. something seen think [Technical sticky. this lot if environmental you And I end penetrated But like you that a of bar regions, versus can it already share some on or dissipate being greater participation, could up we How either more So a of potentially on just could

So, with trying by reset the level driven almost going these levels platform? viewed if ascertain elevated diversity just to be as should higher forward

savings good from volatility Open in the price coming a cost much no form. order benefited in There's back Trading any the extreme from and during dispersion It's point. observed on quarter, question levels clients that the flow wider the

So, alternative will based institutional I makers on do and marketplace that think cost is the that and we from opportunities ebb comes tremendous and of unique. that, flow volatility day creating said order matching I order and dispersion price for that's the per dealer-initiated Trading on to are a savings consistent our basis. institutional flow for in each and Open only drive Having transaction their about quarter. a investors that also orders, not find opportunity down but cost flow from XX% X% market confident more mentioned

it's client the and And do share we deliver term at had going market while that to MarketAxess which longer to profitability or see the a believe to think dealer an do And continue many as order is well, long-term for markets years dealers the are. gains our with dealer that more own well to embracing dealers see great fixed reflects back increased time, where quarters end this market very that orders. with actively And can cost as is initiated liquidity up end clients transacting to either good to another market for benefit growing how transaction nice flow those levels savings on we big of they same the it's see So, come. will income structure. their it participation to that you're these of

And that I obviously where inside network yield participants in EM are just high the with a and to Trading play able has that match another only all market. to don't say normally effect not but match high we're one all wonderful out grade would that seeing Open seeing we're in

continue greatly and network Open to grow that of effect. effect will participants network the benefiting So, are Trading by

And you. a from question Thank Hill have Ken Rosenblatt. of we

open. is line Your

kind what confidence Auto-X is start clients at the barriers, You mentioned it is as there? sort or in offering. become more scale of down where more that earlier seeing larger more liquidity of more I of showing kind to break side or into information maybe moving level any the the think And you're to kind there far trades are on it trade the as of you're back uncomfortable there? pull looking things driven those Is

It's really our see a users on of is client And automation. lists products increasing tradable a that of the We their are. orders of and regularly largest automation some size and back their them of we're comfort. great how what putting into loading of providing they're the number deal analytics of liquid to

we're on guiding helps, it So quality platform. Auto-X they're size how them finding execution at larger orders across the

the platform. in of the the our orders while algo mentioned grow order smaller day much to them on trade up size or launch break a take of trade Obviously, and sizes. sometime also to designed I half the larger of their year, seeing it the to to second do size is the a sizes in into large size smaller to are tool we week course continue biggest clients orders So, users that client over allow

that seeing we're the those in So to market. seeing want to but we're a automation, to a order size with clients of trying trade grow footprint in we're lighter clients also own their number cater their

community the mirrored And auto is dealer their in with I clients on through algos. would with we What the and seeing add execution increase size investor that. just are to

do record trade a to the U.S. it more during event interacting investors in both the confidence credit addition dealers Auto-X, So, overall automation trade trading for makes efficient size through had with the increase in And platform. in in and and volume. I interesting quarter order think and reflects flow in the system QX it on we credit it size quarter that our trading through increased block was in also the

So, signs trading really positive dealer investor automation confidence. see and you in

very now all average the more mentioned of into Tony our system. are the coming are clients block in see system. positive increase You signs using the earlier maturity Those comfortable in terms in trades system.

you. Thank

have with question Chris We Point. Allen from Compass a

line open. is Your

then to? get velocity velocity. I I But increasing. Wondering mentioned? give over not some ask on the could question they And next possibly funds well to wanted to you size It's earlier can have seen that a do that think quant also below levels, years? approach it you can would where the get where if to mentioned you've us relate Rick, encouraging you you losses coming do you think equity there? ever still color there. How do additional

Prior of to up reform, recently X.XX% common bank come see X.X%. back we've capital in more about And recently like was outstanding. debt at it high turnover and we at to to out bonds we grade corporate capital, X% or bottomed X.XX% annual rate

well the on levels we're pre-reg you So, still reform requirements would for see the capital banks. below

of MarketAxess. trading had and needs, ETF trading is I both over if how be what reasonable of target last into was then is. credit and intersects investors the don't with So on liquidity dealers market months part shares the an four to of for market and participants automation, a extension benefits would the which That goal ETF a forget bond solution important using active the critical with

all market and innovation brighter through picture think it's about turnover. a to starting participation trading in the is market it's market brought increase that's I So, on show

like we per a XXXX to prior goal. from something X.XX% near term bounced you lows X% more we've the think it’s seen that or have be getting year and would So, to would back turnover

have Chris And Shutler a you. Blair. question we with from Thank William

open. is Your line

market and give your grade you see of gains update within buckets? what of you share market share us those each the quarter an Could high size did across in by trade bucket, rough on kind

Chris, experienced market share But So all maturities. you side, market block we market between you broke trade the the when gains I and look block give just all it gains the on will share up trading we were, details. trading. sizes share non if and across And at, and

was share points up side, points, percentage about On up and then the non was was percentage market at block our and block up market points. our X.X share the percentage about X.X also X.X overall

share market So was regardless up. of size trade

you maturity, across share well. maturity on a at looked up market would based you all see If sizes heat as map

from have Thank Campbell question we you. Jeremy with And Barclays. a

open. is line Your

on of the market issues that that, couple share especially had quarter, of a out gains the just on quarter. follow in some Just question. on Again, came lot back impressive you the prior pretty during the new ups one of

maybe issued So true, if it was correct? back, like market of that's share if wondering higher more due that's of by structural a I'm this to think looks is future new then shift? what work two, headwind one, maybe be do bit less years, you the actually of kind of a the your our than conditions? So kind home it transitory a from in years. it'd is bond of in prior or And rating

at longer when we of issued the newly seasoned all with quarter. the think gains I high that agree to of from we much that better versus term even during would you than bonds weeks. comment I your first and And But bonds work hard the trading look also share parts after change Yes, a how level in of of in do behavior. four home did environment was know trading did better the

about that place year. and from But developing that hear of key having protocol, So, the work the things and live of the liquid to bonds our to a home through also something on our was encouraging volatility is supporting market progress the new initiative, deal but continue both. markets on second we new to half with some our we of this the a issues we continue the crisis But environment. to that's new protocol. been will for during combination extreme set markets And live going of plenty and are that issues work makers be because nice perfect back very of and that encouraging, has through think levels

then U.S. initiative when And and the shut can maybe clearing expected us variable be on live Tony, likely now self clearing that to just market go the you and system? update for the down to might

we're business percentage in in a is are quarter, expecting our Trading decline. our third self to revenue later the go It's a on live costs to little we So, and in probably once to clearing partners. to new clearing do we have the what third on as understandable, UK given we of us quarter. pandemic impact transition vendor credit we the right anticipated a clearing the and the U.S. the do doing side, on but Open expect What for broker in now, bit than clearing

to So really components two remember, have we clearing costs.

We have it business. on our credit Trading Open

could more if live. We we we million. as revenue and $XXX clearing down, once costs do the XX% points, as million percentage today in down a we think to credit also past goes in What even Trading It's go or $X And X example, been it credit well. have drive we've single-digit. was our principle of XX%, typically, on can about revenue what savings. for XXXX, you costs deliver Open clearing the savings look that Trading Open talked have revenue on side of If at about do the we our business that's match important kind percentage treasury because in

at $XXX rate run you revenue. Trading we're for year look If the first of Open on and this half million

are significant the pushing So, today. we're what cost through savings much Trading Open more given

expense got our into targeted We the part would expect expect live we've go of into do cost And our -- the right now. the quarter, savings expect that’s fourth do quarter. favoribility say guidance. So date we as some line we fourth go clearing on we some

Instructions]. Thank you [Operator

next Sachs. with Our Sheriq question comes from Goldman Sumar

line Your open. is

XQ? portfolio over portfolio Can trading trading on any on in seeing been and the in in color that This Blostein. update you’re have quarter, and side what’s you filling for Sheriq traction there us is the like the the how for volumes Alex this

trading As beginning the launched year. the solution recall, of portfolio our we near you

trade of We I'll to you have product. trade. in seen overall growth today be remind fund that portfolio estimated is X% that

But trade solution. a of solutions solution that So, of portfolio a it's of really still overall the subset the solutions trade targeting not and full a small most market. dealer single trading processing provide more really are

trading trading Our does also solution single but portfolio dealer. both multi dealer our solution,

for in put many of among number of your portfolio price can competition a you clients So, dealers that find and attractive. our something that's

move improving trade. critical enhancements how providing additional portfolio into processing through the are of piece trades We is which assets, owned the portfolio in those a seamlessly

since difficulties in down, market obviously, in slow was in in there over most portfolio volume our billion a recent just $X.X the a fast trade, pricing portfolio launch the So, volatility trades market. moving in given portfolios during

Thank you.

Rich next Repetto Our comes Piper question with Sandler. from

Your line is open.

capture, I normalizes quarter. in the and just sort want earlier, the to issuance. the get and sort back issuance but of you've of to this of and a that variable variable XQ because between How you what this somewhere elevated the back the the, removes share excluding that done impact Tony, market think quarter? Is calculate and duration. the to And sort going could then I and what also of And thing, through rate fee as? longer go you of expect mentioned calculation sort capture? forward? it's you say last maybe And that quarter issuance the the that first Would one you the fee fall would view a of reasonable

look and I when But I can't the at volume did you project the without look related whole would is And the to second issued just is, Rich, on quarter. newly let's of TRACE share issues. So little can here that take bonds. a market well, new what science with tell I you proportion say this what

look look at that quarter period any have the or been volume may issued prior of four just newly first of or it related was bonds. XX%. And about to a If XX% to TRACE you XX% it trading, for weeks if you

questions our issued share portion the without on you piece, our It issue new share would market the market X%. share the up, if our around again, appreciably. to healthier. did scientific, responded related up clearly, And weeks, at go one you market But gains of market were was getting or but share first up share, have dramatically. pulled Rick been up market too And gains did, grade if bit newly newly look bonds you’ve were for X% little On our issued out at not typically lot. our points. increased earlier the a year-over-year even It market look high you to in not percentage X.X So four the that would bonds? of see is a

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McVey the showing Rick turn for closing Mr. am I questions it remarks. queue. other like any no to back in And to I’d you. Thank

and Thank for And we stay enjoy you quarter forward catching months. stay look the and healthy, you next to quarter. summer safe us up joining with and this please

this gentlemen, and participating. concludes today’s you conference Thank Ladies call. for

have disconnect. day. now a great may Everyone, You